Airport Privatization Research Articles

Beyond the Airports Act: Investigating the Privatisation of Airports by Local Governments in Regional Australia

Costs associated with running local airports are spurring some local governments to pursue alternative governance arrangements. Some regional councils are considering privatisation, with four having already gone down this path. Although some of these arrangements broadly follow those specified by the Airports Act 1996, other arrangements have led to fragmented processes and reduced public engagement in local communities. The study reveals that, while long‐term leasing aims to alleviate the council's financial burden, it can negatively impact the broader public interest. The findings suggest the need for more transparent and adaptable governance models to ensure that regional airports serve both commercial interests and public needs.

Privatization of airports and model of public-private cooperation

This article provides a comprehensive analysis of public-private cooperation at airports, delving into several key aspects of this partnership model. It examines privatization models implemented in various countries globally, shedding light on the diverse approaches adopted in different regions. Additionally, the article offers insights into the intricacies of public-private collaboration, using airports as a prime example. By exploring the nuances of such partnerships, it aims to uncover the underlying mechanisms that drive successful cooperation between governmental bodies and private entities within the aviation sector.

Work Practices Mediated By Motivation Enhancing Productivity and Performance of Airports Post-Privatization – An Empirical Evidence

Purpose: Airport privatisation is rapidly gaining ground, leading to a significant increase in research interest. Amid rapid airport privatisation, Indian airports offer a unique lens to study the impact of work practices on productivity and performance mediated by motivation. Theoretical Framework: The study draws upon relevant theories including high-performance work systems (HPWS) and motivation theories impacting productivity and performance. Method: This study investigates the detailed thematic analysis and self-administered surveys (Likert scale) collected from 50 professionals in 9 major Public-Private Partnership (PPP or 3Ps) airports in India on various aspects of work practices which includes work design, digitisation, and flexibility, with motivation mediating productivity and performance including effectiveness, efficiency, and quality outcomes. Their reliability and validity were analysed using Cronbach's alpha, Pearson correlation, and Mediating analysis using Process 4.2. Purposive sampling is employed in this study. Result: The study finds a positive impact of work practices on employee productivity and performance through motivation. Importantly, it reveals motivation as a key mediator, offering valuable insights for aviation professionals. The analysis confirms model accuracy by representing strong prediction and regression value alignment.

Airport incentive regulation in practice

This paper examines the complexities of incentive regulation in the context of airport privatization, asymmetric information, and regulatory weakness in a developing country. Using hybrid Dual-Till revenue cap variations of thirty-four concessioned airports in Mexico for the period 2006–2019, we distinguish within and between regulated period effects on productive efficiency. Our findings reveal a dual nature of variations: negative shifts within regulated periods are linked to heightened productive efficiency, whereas positive shifts between regulated periods, particularly during the resetting of caps, arise when projected demand falls short of covering allowed operational and capital expenditures. This discrepancy leads to a decline in productive efficiency. The analysis highlights discernible weaknesses in the regulatory framework such as homogenous expectations of efficiency gains across all airports within regulated periods. Furthermore, strategic behavior by airports emerges, as they opt to defer efficiency enhancements to the initial year of any given regulated period. We discuss regulatory levers to improve the quality of regulation.

Work Practices Mediated by Motivation Enhancing Productivity and Performance of Airports Post-Privatization – An Empirical Evidence

Purpose: Airport privatisation is rapidly gaining ground, leading to a significant increase in research interest. Amid rapid airport privatisation, Indian airports offer a unique lens to study the impact of work practices on productivity and performance mediated by motivation. Theoretical Framework: The study draws upon relevant theories including high-performance work systems (HPWS) and motivation theories impacting productivity and performance. Method: This study investigates the detailed thematic analysis and self-administered surveys (Likert scale) collected from 50 professionals in 9 major Public-Private Partnership (PPP or 3Ps) airports in India on various aspects of work practices which includes work design, digitisation, and flexibility, with motivation mediating productivity and performance including effectiveness, efficiency, and quality outcomes. Their reliability and validity were analysed using Cronbach's alpha, Pearson correlation, and Mediating analysis using Process 4.2. Purposive sampling is employed in this study. Result: The study finds a positive impact of work practices on employee productivity and performance through motivation. Importantly, it reveals motivation as a key mediator, offering valuable insights for aviation professionals. The analysis confirms model accuracy by representing strong prediction and regression value alignment.

Reviewing Airport Privatization: An Experience of India

Reviewing Airport Privatization: An Experience of India

Reviewing Airport Privatization: An Experience of India

This study has reviewed the airport privatization scenario in the Indian context. It has examined the circumstances of airport infrastructure under the Public-Private Partnerships (PPPs) model. The Government of India (GoI) is justifying the development of airports through PPP mode due to their necessity to provide standard services and efficiency of the projects. However, the deficiency in investments and viability gap are being levy in the form of development. It has synthesized several works of literature. It looks at the historical changes and the ways that evidenced the changes. It has reviewed the developing scenario of airport PPP in India. During the 1990s economic liberation, the activities of PPPs emerged in the airport and aviation of India. India has 24 years history of airport PPPs. This study aims to provide a review of airport PPP experience in India. PPPs in the Indian airport industry are examined in sound regulation. The Government of India has adopted PPP schemes instead of going into full privatization of airports. Since the 2000s, PPP models have been adopted in the development of new airports and the reformation of operational and nonoperational airports. In the year 2006, Indira Gandhi International Airport, (IGIA) in Delhi, and Chhatrapati Shivaji International Airport (CSIA) in Mumbai were partially privatized. After the successful implication of PPPs, in the airport infrastructure the numbers are growing. In the year 2020, six airports were privatized through the PPP model by Adani Enterprises. To date, there are 21 airports in the pipeline of privatization.

Privatization of Commercial Airports in India: Carry over legacy, A nightmare Managing the People agenda

Privatization of Commercial Airports in India: Carry over legacy, A nightmare Managing the People agenda

Understanding the Indian Way of Airport Privatization: Case of Indira Gandhi International Airport, Delhi

Understanding the Indian Way of Airport Privatization: Case of Indira Gandhi International Airport, Delhi

Understanding the Indian Way of Airport Privatization: Case of Indira Gandhi International Airport, Delhi

Understanding the Indian Way of Airport Privatization: Case of Indira Gandhi International Airport, Delhi

EMERGING SCOPE OF AIRPORT RETAILING IN INDIA

Indian airports are not just limited to the business of flying passengers. After the takeover by private operators Airport infrastructure in India has changed drastically. They are matching the standards of global airports. Along with this airports are being promoted as key retail hubs. There has been a big revamp in most of the airports at metropolitan cities like Delhi, Mumbai, Bangalore etc. The key focus is on making airports more lively and vibrant instead of uninteresting place for passengers. The transformation of dull airports into fascinating shopping lounges has happened due to privatization of airports. The gloomy airport retail areas have been replaced with wonderful retail shops, show cases and boutiques. Moreover,people with high disposable incomes frequently visiting airports promises impressive growth in airport retailing. Few years back Indian airports were considered for doing only duty free shopping of liquor, foreign chocolates, perfumes, cosmetics etc but at present this fact no more holds true as at present traveler every need and want is determined well in advance and airport retailers grabs upon every opportunity to provide delightful shopping experience

PRIVATIZING INDIAN AIRPORTS - A SCRUTINIZED EVALUATION THROUGH VARIED CONTEMPLATIONS

This paper elucidates the changing ownership of Public owned airports to Privatisation. The analysis is envisioned towards the passengers’ interest in availing air transport which are likely to become more efficient. The improvisation of regional connectivity would yield more people to opt for air transport. A series of efforts were taken before making the questionnaires that were placed in the survey including the psychological aspects when deciding about the choice of airports which are getting privatized. The collected inputs from the passengers vary from seldom travelers to frequent travelers across the country are analyzed using the linear programming technique such as the DEA[1] which depicts the effective views of the travelers to go for Privatisation. The questionnaire was carefully framed such that all the aspects covering ergonomics level, including the ease of navigation, the reach of supporting staff. The airports would get diversified with their services without the intervention of Government. In India, a total of 137 airports which include 23 International airports (3 Civil Enclaves), 10 Customs Airports (4 Civil Enclaves) having custom and immigration facilities for limited international operations and 104 Domestic airports (23 Civil Enclaves) are administered by the Airport Authority of India (AAI).[10] The USA has 14,549 Private airports (74%) within the total 19,636 airports. Many countries like the USA, Russia, China, U. K, France have a larger number of Privately-owned airports helping their countries in getting economically strengthened. IATA forecasts a growth of 6.8% per annum for India. The usage of No frill airports would reduce the cost of capital investment in making an airport to start functioning and help the nation to grow in the economy. In addition, Six AAI airports are operated, managed, and developed under Public-Private Partnership (PPP) namely, Guwahati, Jaipur, Ahmedabad, Mangalore, Thiruvananthapuram and Lucknow. At Mumbai, Delhi, Chennai, and Ahmedabad, Performance Based Navigation (PBN) arrival and departure procedures have been implemented and for Hyderabad airport, it is in progress and Space-based, Final Operational Phase (FOP) of (GAGAN), GPS Aided Geo Augmented Navigation[10] is under implementation which is not airport-based and will be available for use at all of the country's airports. Enhancing the prediction of outcomes through feature selection, the Data envelopment analysis (DEA) method is used for the analytics questionnaire. This is a function whose form is based on the efficiency of the scrutinized evaluations. It's an approach for measuring the performance efficiency of global public airports through varied contemplations of results of the survey. This technique aims to measure how efficiently a DEA uses the resources available to generate a group of outputs along with feature section models that are then analyzed after that to evaluate the contributing factors for airport operation and privatization.

Airport concession in Japan: Current status, problems, and future directions

While the privatization of airports has progressed around the world, Japan has witnessed a rapid increase in the application of concessions to airports. Concessions have been introduced in Japan under the conditions that Japan has a unique airport governance structure, no foreign companies have experience in airport development and operation, and there are no domestic professional airport operators. This has caused social problems such as poor initial response to typhoons at Kansai International Airport which was converted to concessions in 2016. In this paper, we examine the current status of airport concessions in Japan based on published data by airport administrators etc. and consider issues through interviews with related parties and social network analysis on Japan's concession market. We also present solutions or future prospects for problems such as the rigidity of airport operations caused by over-specified proposals, the monitoring system on the public side, risk sharing between the public and private sectors, and the difficulty of innovative airport operation and the cultivation of the airport operation industry. The implications of this paper's findings can serve as policy suggestions for improving future projects.

An econometric study of the effects of airport privatization on airfares in Brazil

This paper develops empirical models to test the impact of airport privatization on airline fares. We employ a difference-in-difference approach combined with an endogenous switching regression model to account for the selection of airports to be privatized. The results suggest that prices for tickets on routes with at least one privatized airport at an endpoint are about 3–3.5% higher than on routes between two publicly managed airports. By testing moderating effects, we find evidence that market dominance enforces the privatization impact on airfares. The main conclusions are consistent using various control group classifications.

Does privatization make Brazilian airports more efficient?

Airport concessions to private management began in Brazil in 2011 to address infrastructure bottlenecks and the need for investments. Productivity improvements after privatization need to be measured and efficiency gains can help to identify strategic points where to intervene both in current and upcoming concessions. However, previous studies have applied neither the Slacks-Based Measure Data Analysis Envelopment models nor the second stage Tobit regression to evaluate airport efficiency, especially in the context of Brazilian airport privatization. The objective of this study is to verify if privatization contributes to improving Brazilian airports' productive efficiency compared with public airports, using variable slacks and identifying new socio-economic variables that may influence the productive efficiency index. A two-stage SBM-DEA approach found that only 40% of the sample among 28 airports are efficient, evidencing poor management overall, and the slacks show the sectors that need most attention and investments. Based on the productive process and the sample evaluated, the study concludes that privatization of Brazilian airports did not improve their production efficiency. A revision of the contracts in the first round of concessions is suggested, as contractual obligation may result in lower production efficiency.

DIGITAL TECHNOLOGIES AND INNOVATION IN AIRPORT SERVICES: A BENEFIT MODEL APPROACH

Significant changes have taken place at airports due to market liberalization, airport privatization and growing competition. The growing demand and evolving expectations of passengers, require new ways of using technologies, to enhance operational processes and the whole travel experience. The digital era is transforming the aviation industry and has a significant impact on its future. The aim of this study is to assess the benefits of applying digital technologies to airports and airlines and their inseparable connection with innovative services provision to passengers, while it describes how to create a seamless end to end experience at the airport, maintaining a high level of security. Moreover, the study underlines the contribution of digital technologies to aviation industry, focusing on the organizational integration and passenger experience optimization. Reference is made to the pandemic, of COVID-19 and its impact on air travel. Primary research methodology is qualitative, with structured personal interviews, while the main findings indicated that through digital technologies and innovative services, the benefits for airports, airlines and passengers are increasing. Finally, this paper discusses a benefit model approach, based on the literature review and the research findings, that may have theoretical and practical implications.

Passenger profile and its effects on satisfaction level in food and beverage establishments: Case study of major Brazilian airports

Non-aeronautical revenues are becoming essential source in the financial health of airports, especially in the context of airport privatization through which the main Brazilian airports have been. The purpose of this study is to evaluate the Customer Experience (CX) in the commercial areas of the 20 main Brazilian airports, using a broad database from the Permanent Passenger Satisfaction Survey, conducted by SAC (from 2016 to 2018). This paper joins other recent work that has attempted to fill a gap in the academic literature, where the topic of customer experience in commercial activities, has not yet been extensively explored. To analyze passenger satisfaction at Brazilian airports, a logit discrete choice model is used. The key findings were the identification of variables (such as nationality, type of flight, frequency, whether the passenger was accompanied or not, whether it was in connection, airline, and gender), which affect passenger perception regarding food and beverage services. It was observed that passengers traveling alone are more satisfied with cafeterias and restaurants, while frequent passengers at airports have a worse degree of satisfaction with commercial services.

Analysis of the effect of bundled airport privatization on an airline network

Depopulated regions face declines in traffic demand for airline service. The airline network in Hokkaido, Japan, plays an important role in the regional economy, healthcare, and sightseeing. Toward maintaining this airline network, the “bundled privatization” of airports has been discussed. Under such a system, several airports are privatized as a package for management by a single company. This study proposes a model for analyzing the behaviors of airport operators, airline companies, and passengers when bundled privatization is introduced to an airline network. Under bundled privatization, an airport management company can determine the landing fees of all airports such as to maximize the profits of all its airports, while an airline company can determine its service frequencies and aircraft sizes such as to maximize its profit. As a result of these two profit-maximization behaviors, an equilibrium state is obtained. The proposed model is applied to the airline network in Hokkaido, and the results of numerical calculations are discussed.

The Meaning of Private in an Age of Surveillance

The private has great significance for the individual as it is where identity is stored. However, the private comes at a cost, particularly in a time of mass surveillance, which is heightened by the present Coronavirus pandemic, and is becoming more and more rare as individuals seek security. At the collective level, whole societies are moving towards privatisation, as the private gives relief from increased surveillance by media, governments and informed individuals and organisations, thus allowing more operational flexibility. Private and public are significant as polar ends of a spectrum in which individuals and collectivities must position themselves on a wide range of issues while maintaining identity. As shown in the case of airport privatisation, the determining process has been influenced by cultural factors such as a desire to avoid surveillance and scrutiny, sociological factors such as contagion, and political factors such as convergence. In all areas of human activity, a rebalancing between private and public may be necessary, and a transdisciplinary approach would be appropriate.

Airport privatisation: A successful journey?

It is now over 30 years since the first airport privatisation occurred with BAA in the UK in 1987. Therefore, the aim of this paper is to assess the impacts of this development and evaluate its effectiveness, using examples from all over the world. It begins by considering some key issues such as the extent of government involvement; the selection of operator/investor; the choice of network/group versus individual operations; and the relevance of economic regulation. This then leads on to an investigation of measures of success, particularly in relation to efficiency and service quality. Reflecting on the privatisation journey, the paper defines key changes that have occurred concerning how privatisation is considered now compared to its early days in terms of motivation, geographical reach and type of model, investor and sale. It also highlights the importance of the regulatory and competitive environment and briefly considers the impact of the coronavirus pandemic in 2020.